2018 was a busy year for the blockchain world. Not all of my predictions have been made. But what is sure is: the hype is over. The adoption of this technology by the industry has been less explicit than expected. Blockchain spending by companies has been slower
expected, while many ongoing projects have been blocked or even stopped. This had a lot to do with the turbulence on the cryptic markets. And it's not strange, because many still see a close connection between bitcoin and blockchain technology. Cryptographic markets
it has lost more than 80% of the total value from the beginning of the year. Added to this is the increased attention of the government and the absolute prohibition of certain activities such as cryptocurrency, ICOs, etc.
While 2018 has come to an end, many are wondering what awaits us in the near future. Where things are going, and what are the trends and developments that CIOs and other blockchain leaders should be aware of. It is therefore time to give a vision
forecasts for the blockchain technology for 2019 and beyond. I know, it is always difficult to predict what is in store for the future. But here are some of my predictions in 2019 concerning the blockchain technology that should be on their radar screen.
Let's take a look at how things are likely to "work" in the next 12 months.
The blockchain industry is working to improve its image
Blockchain has a reputation problem. It is believed that many companies are actually skeptical of blockchains and reluctant to adopt this technology only because it is too tied to cryptocurrencies and especially to bitcoins.
It is expected that the blockchain industry will further seek to work on its image in 2019 and will separate the blockchain from the crypt into the minds of the business. This to allow the adoption of blockchain on a larger scale, should be widely communicated that blockchain
the technology can have numerous cases of use completely unrelated to cryptocurrencies.
We will also see a change in the terminology. It is reasonable to expect that the term blockchain will gradually be replaced by another more neutral: DLT technology or distributed register technology. This is to send a clear signal to the management teams within the companies
their projects have nothing to do with the hypocritical world of cryptocurrencies and Ico. Once this becomes clear to more people in the business world, blockchain will be able to experience a much wider adoption.
The problem of the trilemma will (largely) be addressed
Another challenge for the blockchain industry is to solve the so-called problem of the trilemma. Despite the exaggeration and the huge investments in existing blockchain projects, the great promise of this technology has been largely dissatisfied. A big obstacle the
Industry faces the imbalance between scalability, decentralization and security. This seemingly intractable trilemma of technical barriers has weakened the confidence and skills needed for mainstream adoption and business relevance.
A lot of work has already been done to find solutions to this trilemma. Important research has been used on the possibility of overcoming key shortcomings in existing architectures, this to allow blockchain transactions to become faster while preserving
security and decentralization.
This should allow developers to create applications that solve real-world challenges. Although it took time to reach consensus, downsizing solutions like sidechains are already showing promise. And as we continue in 2019, these solutions
it will become increasingly sophisticated. It is expected that the real achievements of scalability and performance will begin to materialize and the trilemma blockchain will be largely resolved in two or three years.
Companies will look for optimal applications
Moving further, we will begin to see a separation between hype and reality. 2019 will be a year in which the industry will focus on the real-world problems that blockchain technology could solve, with the goal of making "incremental"
and the necessary changes to operations ".
Blockchain technology has long been unjustly considered by many to be a "magic way" to solve all the problems we are dealing with today. While it is true that blockchain can help with many of them, there are still numerous other problems that are more suitable
to be solved with alternative technologies, such as robotics, artificial intelligence and the like.
According to Deloitte's Global Blockchain Survey 2018, companies are starting to move from proof-of-concept projects to real-world applications. There will be a particular focus on the discovery not only of where the blockchain could be, but also to find places where
it's the best solution.
We will then see a transition of corporate interest towards the identification of tangible and productive use cases for blockchains. In this way the projects will move away from a "blockchain-for-everything" approach to back-to-earth implementation.
Blockchain projects could become more mature …
In 2018, companies implemented a large number of high-profile blockchain pilots, but the results of these developments have yet to come to full realization. At the start of this year Forrester Research anticipated that 90% of blockchain pilots will not be complete
products or services.
In order for industry to mature and obtain legitimacy, this jolt had to happen. 2018 was a tough test to determine how to improve this technology and what problems could be solved. The successes and failures of blockchain technology
they have provided technology providers with the tools they need to get started in the next phase of development: clear and focused goals and expectations.
In 2019, blockchain technology is expected to eventually age. As technology and evaluation begin to converge at rational levels, the stage for the blockchain industry will be set to enter the next stage of maturity. A level of maturation by
blockchain space, with sustainable blockchain projects on the rise while dedicated blockchain teams are stepping up their efforts to implement "exciting" projects.
…. and increase the visibility for blockchain
In 2019 we will see an increasing number of new projects and platforms grow. Developers and innovative projects they work on will continue to advance blockchain capabilities, creating concept demonstrations, building and
achievement of the product market use cases.
We could expect to see projects that go from supply chain, identity, transparency and governance demonstrating the true value of the blockchain. Several important blockchain projects will significantly increase its visibility and if the delivery as promised will be positive
influence the corporate interest in this technology.
As a result we will see a wave of specific and widespread use cases and the real applications entering the market will emerge in 2019 when companies are trying to implement more targeted blockchain applications.
Other companies will enter the blockchain arena … ..
2019 should see the adoption of blockchain on a larger scale as a growing number are seeing that this technology will also provide benefits for their companies. While the question goes from "What is blockchain?" To "How can we use blockchain technology?",
we can expect more companies to enter the blockchain space.
Companies are already experimenting with new technology functions on a daily basis and the wide range of blockchain applications are starting to emerge. In an effort to eliminate inefficiencies and simplify the processes within their activities, we
therefore, you might expect to see an increase in the number of traditional companies that incorporate blockchain technology to provide solutions for everyday business problems, using blockchains to integrate existing systems or create completely new business models.
… .. and invest more in blockchain technology
Blockchain technology is set to enter a new era in 2019, with many industry experts expecting technology to be more widely adopted by traditional companies. As more and more companies are moving towards this emerging technology, we can expect investments
in this technology it will increase further.
PricewaterhouseCoopers (PwC) recently reported that many of its customers are "spending a lot of money" on blockchain initiatives, and that blockchain spending should continue to grow. According to a Global Blockchain Survey of 2018 in Deloitte, 40% of respondents reported
that their organization will invest $ 5 million or more in blockchain technology in 2019. An investigation conducted by the International Data Corporation found that survey respondents were willing to invest millions in blockchain technology next year.
Decentralized apps (DAPPS) will continue to grow
"Too many applications that use a blockchain register still rely on a centralized application that represents a single point of failure and also a vulnerability that could" tamper "with data before it is written to the registry."
As companies shift their focus from "what is blockchain" to "what we can do with this technology", another key trend in 2019 will be decentralization of the app itself. These are the keys to a wider dissemination of blockchain and the adoption of cryptocurrencies, like them
it will make blockchain more accessible and accessible. IBM has already developed a new blockchain product that allows start-ups and developers interested in creating their own general ledger products. And some predict that we will see the first one
anywhere, which will hit one million users a day sometimes next year.
Off-chain components are important for company-centric apps
Building such business applications, however, is not an easy task, but it is a necessary step to ensure a broad adoption of blockchains for business use. The application of blockchain technology is therefore important but the blockchain ledger is only a small part of
the company app.
More and more applications designed and designed will go beyond the blockchain ledger in 2019. As developers are increasingly recognizing the importance of non-technological problems, they will pay more attention to off-line components as a fundamental part of a blockchain.
project. User management, workflows, systems integration and many other off-chain components are required for integration. Whether it is a matter of agreeing definitions of data and processes, intelligent contract rules, access authorizations, governance frameworks and legal agreements,
ensure that compliance continues to challenge those operating in regulated sectors.
Blockchain-based deals in a large area of industries
Looking at the most active blockchain sectors, these are still to be found in finance, the supply chain and the commercial finance industry. These traditional companies will continue to accept both blockchain in their daily practices and to shape its progression
through use and regulation.
But even sectors such as distribution and services, logistics, aviation and others have begun to explore the potential of blockchain for use cases such as payments, remittances, traceability, etc. In 2019 we will begin to see more acceptance of blockchain-based
offered by a much broader industrial base. The technology will be applied to a myriad of industries that can and should benefit from its transparency, speed, efficiency and reliability. The industries – from production to retail – will begin to explore the
blockchain improvements can lead to supply chain transparency, ownership monitoring and others.
… .. will interrupt a growing number of industries
It is certain that in 2019 the blockchain will further revolutionize business processes for many industries. Technology is poised to change the various industries, financial services and banking industry, as well as the shipping and supply chain industries
being the most significant.
We are slowly but surely starting to witness the gradual interruption of other sectors such as insurance, health care, retail, education, loyalty, etc. It is likely that these disruptive impact of blockchain on these industries will grow further
as the blockchain technology will become more popular. The interruption that this technology will bring for these segments will however not be fully realized in the course of a single year.
Government agencies will begin to adopt blockchain
The idea of u200b u200bthe immutable distributed ledger and its security levels is also attracting various government agencies to consider the use of this for storing data on that system. This is due to the fact that it can contain large amounts of data that are therefore available
from anywhere in the world at any time, while the system is mostly hacker-proof. It clearly has potential, and government agencies will not wait too long before starting to use blockchain for their own purposes. Many believe that the process could indeed
start in 2019. Estonia, for example, has already implemented blockchain technology with X-Road, a decentralized ledger that stores the credentials of all citizens. And other authorities are looking for use cases such as land registry, tax compliance, etc.
Blockchain will meet big data, AI, IOT and other technologies
Another important trend is that promising technological advances in other areas such as artificial intelligence, Big Data, IoT and biometrics will increasingly converge with blockchain technology. The convergence / conjunction between blockchain and the Internet of Things (IoT)
he is already taking steam. According to a report by International Data Corporation (IDC), many IoT companies will incorporate blockchain technology into their products. IDC predicts that 20% of IoT installations will have installed blockchain services
by 2019. In this way, companies will be able to move forward and create completely new business models as well as revenue streams. As a result, markets are expected to be completely new.
The use of blockchain in products connected to the Internet of things – like wearable devices and smart appliances – also means that consumers will use the technology without even realizing it. This usability will be a key factor in encouraging the adoption of
blockchain technology in all areas.
Progress in the Artificial Intelligence (AI) sector is also set to transform industry, with advances in blockchain and IT security among other areas. Companies are set up to use artificial intelligence to improve customer experience and potentially reduce
costs in some areas of their operations. Blockchain is also useful for these sectors because it has a secure structure and automates data exchange.
Increased demand for blockchain experts ….
As blockchain technology is increasingly seen as a non-bitcoin technology and will become more popular, companies should "finally overcome their fears" and start applying them. As a result, there will be a strong demand for blockchain experts,
architects and people with specific blockchain skills and an urgent need to attract the best talent in the industry. Finding people with the skills to design, implement and maintain blockchain technology will still be a key challenge for
companies in the near future. Because the technology is new, blockchain engineers are very few.
…. and for education and knowledge sharing
Another challenge in the industry is to overcome the current lack of formal education for the blockchain. The demand for education and training in this sector will increase, particularly because technology goes beyond bitcoin and will see a more general interest. As a result, we
it will also see greater commitment from universities and other higher education institutions to introduce these blockchains and other technology courses into their package.
Higher education institutions are already involved in research and development and encourage developers to bring forward the entire blockchain ecosystem. More importantly, however, the blockchain industry must continue to drive research and development of technology
and share their blockchain knowledge with industry through a "strong global open source development culture".
Evolution of the blockchain ecosystem
The blockchain ecosystem continues to evolve rapidly. Last year saw the dominance of major platforms such as Ethereum, Hyperledger Fabric, R3's Corda, Digital Assets and others. These were the basis of the main blockchain developments.
Although their dominance in the market will continue, with the increasing acceptance by other industries and segments, new platforms (such as insurance, aeronautics and transport) will continue to emerge with different strengths. With competitiveness
on the rise, and the cry for interoperability and increasing standardization for optimal communication between different platforms and different types of blockchain networks, the blockchain industry is nevertheless going to undergo some kind of consolidation in 2019.
Those platforms or networks best equipped to meet the requirements of companies will survive.
Comeback of criptovalute … ..
After a disastrous 2018 in which the total market value of all cryptocurrencies has decreased by 80% to about $ 200 billion, we will see a return of cryptocurrencies in 2019, with a much more stable cryptographic market. Only the most respectful companies that solve problems
will see their coins survive. This means that only those cryptocurrencies that really add value are here to stay and will continue to grow in 2019. Most of the existing cryptos, especially those that are not supported by legitimate and promising projects,
to die. Some 2000 cryptocurrencies of 90% say some.
… and decentralized cryptographic exchanges will grow
While cryptocurrencies continue to evolve, even crypto exchanges and their impact on the encrypted world. The cryptocurrency exchanges that arose in 2018 will show growth both in their number and in their popularity in 2019. The decentralized exchanges will therefore become
increasingly important in cross-border payments and investment markets. Although most of the current crypto-exchanges are centralized, the number of decentralized crypts will increase, as it will offer better control by the user, more security
level and better liquidity. However, consumers will demand that these encrypted exchanges be regulated, as more and more jurisdictions adopt regulatory frameworks on cryptocurrency.
From utility tokens to security tokens and STOs
The token model is changing radically. Security tokens, which are tokens with regulated guaranteed assets, or simply actions in the chain lock, are intended to be another major trend in terms of coins and tokens in 2019, while with utility tokens, there will be a selection
process.
Investments will continue to leave the utility token space and switch to digital resources with a clear use case (eg XRP and cross-border remittances). Companies are increasingly realizing that not all projects require tokens and security tokens (STOs)
with the support of real assets it will become more prevalent. Many past token projects used only ICOs as an opportunity to raise money, without a truly decentralized and functioning "token" economy in the background.
The securities are easier to control and close by the government, since they have a "bankruptcy point of law" 9i.e. legal entity that can be targeted). These security tokens and token resources are an exciting trend in the financial sector. They will surely gain more traction,
opening the doors in the financial markets.
Greater regulation and control in the crypto market …
The expectations are that the sector will become more rigorously regulated in 2019 and beyond. Regulators will be intensely focused on the cryptographic sphere as they increasingly accept that the sector is here to stay. More regulation will be introduced and this
it will also allow legitimate businesses to thrive, making cryptocurrencies more reliable, while stabilizing the market.
The actions of the US SEC will affect practically every other jurisdiction. As the largest and most influential regulator in the world, this will ensure that other regulators around the world will follow the example, adding structure and paths to legal and compliant operations.
of encrypted companies. A uniform set of global cryptocurrency guidelines would do much to stabilize the market and provide some security and direction. These clear structures would lead to greater clarity on how and where to encrypt
companies can exist and prosper and grant permission to professional operators to work openly.
……. but also more attention from regulators in the blockchain segment
The blockchain technology itself will probably also receive more attention from legislators and legislators in the near future. Especially if it is used by governments and large organizations. This will be a challenge for companies operating in space,
but they also offer an opportunity for innovation and development.
The introduction of the General Data Protection Regulation (GDPR) in Europe in 2018 had already had a widespread global effect. In 2019, we will see privacy and data protection trends continue to grow in importance. This is something we can expect
with blockchain, given that much of this technology is designed to verify identity and protect the privacy of people and resources beyond traditional boundaries.
With the blockchain innovation moving quickly and its adoption is on the rise, the industry must adapt and have an open dialogue with regulators to ensure that progress is not reduced.
By the way, happy new year!
